While Robust, UK Mortgage Approvals Slowed Slightly in January

Close to 100,000 UK homebuyers secured mortgages in January, highlighting the ongoing strength of the country’s coronavirus-induced home-buying frenzy.

There were 99,000 mortgages greenlit in January, according to data released Monday from the Bank of England. Though slightly below the 102,800 mortgages approved in December, the total is still far above the six-month average of 67,900 per month that was recorded in the lead-up to the pandemic, the report said.

The temporary stamp duty holiday, which, for now, is scheduled to expire at the end of March, is a tax break that eliminates the fee on home purchases up to £500,000 (US$696,000) and can save buyers a maximum of £15,000.

Further bolstering demand among homebuyers are low borrowing rates and drastically altered housing priorities. Now spending more time at home and working remotely, buyers are eager for more space, quieter surroundings and gardens.

An anticipated three-month extension to the stamp duty holiday, expected to be announced by Chancellor Rishi Sunak on Wednesday, looks set to draw out the appetite for new homes a little longer yet.